Buying Car

[Richard Edwards]

Please advise or direct me to the thread about process, documents, etc. when buying a used car from an individual.

Thanks,

ED

[J D Sauser]

Originally Posted by Richard Edwards

Please advise or direct me to the thread about process, documents, etc. when buying a used car from an individual.

Thanks,

ED

I have just bought a vehicle about two weeks ago.

• Once I found the vehicle I had a "promesa de compra-venta" drafted and paid a deposit, so the car would be held for me until I had the necesairy funds wired over to my account.
• You want to see the original registration (called Matricula). The matricula is also title and you are advised not to cary it in your car but keeping it in a safe place while you keep a photo copy of it your car, so, at times it will take time to finally see it in original, because owner and dealer will be cautious. But you want to see the ORIGINAL. You want to see the name of whom sells the car to you on it on the front and the word "ACTIVA" in the status box to the right of it. On the back nothing should be written... this is where the original owner (the one who's name is on the front) will sign it over to you and where you will sign bellow it at time of reception. Check the VIN. You also want to positively identify the seller (cedula and/or passport) and match him to the name on the matricula.
• You will need good quality copies of the sellers cedula and/or passport. Make a good bunch of them. While you are at it, you need copies of your current ID. Yes, there is no problem with your passport and you not (yet) being a resident.
• I then spoke to my lawyer which confirmed that the sales contract had to be drafted by a lawyer. So we did this in four (4) full copies... all to be later signed in original. They have to be notarized as to a lawyer (can be the same) with a notary public license to verfy signatures and all. As in all deals, you do not want to accept the "generous" offer of dealers to use their lawyer, because that's just what he is and he will only look after the dealer's interest.
• You may want to take up the VIN number and engine number and check them throughout the vehicle for a match and run them by the Policia Nacional to make sure the vehicle is not missing somewhere, however they will not give you an official document unless you come with a signed contract... and nobody will sign a contract without you pushing all the cash over the table.
• At this time you proceed to the transaction. They sign the contracts first and you do so too, for the time being, they keep the contracts. Then the owner alone signs of the back of the matricula. Only then you hand over payment against, all but one of the 3 contracts (again, all originally signed), the ORIGINAL signed matricula, which you now sign and keep and a receipt to state the same amount (*) as stating in the contract and that the vehicle is paid in full... signed by the seller and any dealer. It's your money against all papers at that time. You do not accept delays, excuses or explanations. It's now or never. (*) I have been suggested that we could state a lesser amount in the contract and receipt to pay less transfer tax... I have declined, you do as you see fit or as your lawyer advises.
• Then you take the vehicle to the Policia Nacional (Plan Piloto) and they will take up the VIN and give you a little paper stating that they have copied the numeber and matched it to the one shown on the contract ... RD$ 100.oo.
• With that paper and an original contract and the original matricula you go to Procuraduria, pay about RD$ 500.oo and have one of the signed copies of the contract sealed by them. It's kind of like a state notary and a good way to get 500 Pesos from you.
• You go back to the police which will keep that Procuradoria notarized copy of the contract and hand you an other little paper which states that you can come back later that day or in a day or two.
• The police will then issue a statement of non-issue, stating that the vehicle is not stolen. And a comprobante that the car is ready for transfer. With the copy of the old matricula, 1 original contract, and copy of the sellers cedula, you can now insure your vehicle and enjoy the roads of this country.
• You will have your bank issue a bank certified check for the transfer tax. Many opinions have been posted on this forum in the past about how it may be calculated and they may have been right a the time. Two weeks back, it turned out to be 2% of the transaction amount shown on the contract. Finally we had to find out that on top of that there was a new tax of 1.3%. The check for the total amount has to be made out to the Tax Collector (el cobrador de impuestos) in RD$.
• You will then want a tramitador or your lawyer to do the runarround and pull your new matricula... which should take about a day or two.

This was in Santo Domingo, DN. in the first days of March 2007.

Enjoy... J-D.

[globalmike295]

Would you still have to do ALL of this at a used car dealer? That sounds like too much trouble for a vehicle purchase.

[J D Sauser]

Originally Posted by globalmike295

Would you still have to do ALL of this at a used car dealer? That sounds like too much trouble for a vehicle purchase.

Even more so, since you would not be dealing with the owner directly (and you will need to, as described). The above example was for a 1 year old vehicle at a used vehicle outlet/dealer.
New vehicles are easier and there is no transfer tax... something to keep in mind when you compare new to nearly new!

Some dealers will do that all for you (most will suggest), but that will take control out of your hands and you may not know whom all the dealer knows, hence my lawyers advice not to accept that offer... YOUR lawyer may advise you otherwise... but aking first would not hurt.

If that's too much trouble to you, there is still the bus, carros publicos and moto conchos. Which part would you like to skip anyway? The police checking if it's stolen or not or paying transfer taxes in oder to be able to get your registration (matricula)?
What I would suggest to do, is to bring along YOUR lawyer (and they generally have a go4 that will do most of the standing in line and running) and have THEM do it all for you.

... J-D.

[Chris]

Excellent Post J D Sauser! and thanks. There has been a few enquiries on the board as to what paperwork is required and what the process is, so I'm going to sticky this for a while.

[globalmike295]

Thanks JD it's buy new or hire a lawyer

[J D Sauser]

Originally Posted by Chris

Excellent Post J D Sauser! and thanks. There has been a few enquiries on the board as to what paperwork is required and what the process is, so I'm going to sticky this for a while.

Thanks to all, I am flatterd.
Please just keep in mind that laws and procedures where changing while this was processed in the first days of march 2007... it may well continue to do so. By the way... I love my guagua, a 2006 Toyota Hilux double cabin picup with a 160 HP turbo diesel engine... runs 27mls to a galon (about 43 km to the galon or 8.3 liters to 100km)!

Similarly, for residencias they now demand that birth certificates have to be presented authenticated by the dominican consulate at the applicants country... birth certificates are a worthless piece of paper as it does not photo identify the bearer and one could asume that somebody who has a valid passport was born at some point of time. Even my domincan lawyer found that funny. But then, she's a smart girl.


Thanks! ... J-D.

[LOCAITO BLANCITO]

How much was the the Lawyer's fees?

thanks

loco..

[Rocky]

I'm all for erring on the side of caution, but to go to the cops to assure that the vehicle you are buying is not stolen, when the vendor, properly identified with his/her cedula, is shown as the owner of said vehicle, on the matricula, seems like a complete waste of time.

[J D Sauser]

Originally Posted by Rocky

I'm all for erring on the side of caution, but to go to the cops to assure that the vehicle you are buying is not stolen, when the vendor, properly identified with his/her cedula, is shown as the owner of said vehicle, on the matricula, seems like a complete waste of time.

I understand your line of thinking, Rocky, it's a very logical one, and you may have more experience and thus confidence in the process than I do as a first time buyer here. However, I think that this is one point that is very important... to make sure the best way possible that there is no legal issue pending on the vehicle. After all, once the money changes hands... it's gone and the buyer is stuck with what ever deal he made.
Isn't that exactly what so many experienced forumites tell posters when they come on here to report about their deals gone bad... "why didn't you..."
Also Procuradoria was at that time not accepting transactions without a PN confirmation of the VIN and that the vehicle was "OK" nor did they seem to do the "quick" transfer at the Plan Piloto without a contract stamped off by Procuradoria, so it goes hand in hand. Actually, I don't think the process is completely wrong... it's just too many offices scattered all over town, waiting lines and "taxes" here and there.
Again this was in Santo Domingo... things may be less "organized" at other locations.

The dealer seemed to indicate that "he" could have had it done easier and quicker, yes even cheaper (less taxes... which tells something too.)... but then that was exactly what I did not want to... the dealer taking short cuts at his own discretion and pleasure...

... J-D.